Key Highlights

  • Net Revenue rose 72% year over year to USD 218.1 million; sequential growth was 29%.
  • Infrastructure revenue reached USD 125 million, up 210% and now the largest category.
  • Non-GAAP diluted Earnings were USD 0.62 per share; GAAP diluted earnings were USD 0.30.
  • Fourth-quarter revenue is guided at USD 240 million to USD 260 million.

Results for the Quarter

MaxLinear (NASDAQ:MXL) reported third-quarter 2026 results on Thursday. Net revenue was USD 218.1 million, up 72% from a year earlier and 29% from the second quarter. Non-GAAP gross Margin was 60%, up 50 basis points sequentially on a favorable shift toward infrastructure products. Non-GAAP Operating Margin was 29.5% against 12.1% a year ago.

Non-GAAP diluted earnings were USD 0.62 per share, up 77% sequentially and 343% year over year. GAAP diluted earnings were USD 0.30 per share, compared with USD 0.02 in the second quarter of 2026. Operating expenses were guided for the fourth quarter at USD 65 million to USD 70 million on a non-GAAP basis, reflecting continued Investment in high-speed interconnect research.

Infrastructure Takes the Lead

Infrastructure revenue of USD 125 million rose 210% year over year and became the company's largest revenue category, above half of the total. Broadband revenue was USD 53 million, helped by FiberPON and Wi-Fi 7 gateway deployments. Connectivity revenue was USD 25 million on service provider deployments in North America and Europe, and industrial and multimarket revenue was USD 15 million.

CEO Kishore Seendripu said the company is in the early stages of a multiyear AI-driven growth cycle. Full-year 2026 optical Data Center revenue is now projected at USD 250 million to USD 270 million, revised upward on faster adoption of optical PAM4 products. Storage accelerator revenue is projected to double in 2026 on gains for the Panther platform in AI inference workloads. Product lead times are 26 to 28 weeks for optical products, with customer visibility and bookings extending into 2028.

Technology Roadmap and Supply

The company is moving from its 800-gigabit Keystone platform to the 1.6-terabit Rushmore architecture. Initial revenue from the next 1.6-terabit product families is projected for 2027, with a Volume ramp in 2028. Management said 1.6-terabit content carries average selling prices more than double those of 800-gigabit products because of integrated transimpedance amplifiers. Qualification of an XGS PON solution for inter-data center control planes is complete, with first deployments scheduled for 2027.

Supply is the stated constraint. Seendripu said foundry capacity for the digital signal processors is limiting, and that resource bottlenecks restrict how many module qualifications the company can support at once, requiring prioritization of customer programs.

Cash, Credit and Working Capital

Operating cash flow was a use of USD 13.6 million, reflecting a large wafer prepayment to secure Supply for committed orders through 2027. Cash and equivalents were USD 109.9 million. An amended credit agreement raised the revolving Facility by USD 70 million to USD 200 million.

Inventory was 111 days, down from 123 days in the prior quarter, while Days Sales Outstanding were 31, up from 28. For the fourth quarter, revenue is guided at USD 240 million to USD 260 million and non-GAAP gross margin at 59% to 62%. The chief financial officer said gross margin continues to trend upward as the mix shifts toward infrastructure.

Reference Points

The quarter combined a 29% sequential revenue increase with a cash outflow from operations, as supply commitments were funded ahead of shipments. The fourth-quarter guide midpoint of USD 250 million sits about 15% above the third quarter. Items to follow include foundry capacity for DSP supply, the optical revenue run rate against USD 250 million to USD 270 million for the year, the 1.6-terabit qualification schedule, the revolver and wafer prepayments, and gross margin against the 59% to 62% guided range.